The stock was up over 100% in a matter of months. A slight drawback happens before the next rise. I say it hits $12.25 - $12.50 and in 3 months its at $20. It can't continue going up forever. In 5 years, this will be a small blip in the graph.
All builders took a hit today, some more than others. I noticed the ones that took the biggest hit are the ones that are carrying more debt as it relates to total equity. The concern is this fiscal cliff issue as debt load could create problems if a downturn hits. If you believe that the fiscal cliff will be solved, then these stocks will go back up with a resolution.
Adjusted for backlog, assets, and tax-loss carry forward (2006-2011) KBH is now trading for 1.3 x book. This Obama sell-off is just like November, 2008. I hope he finally gets his act together and puts-it to the greed machine that is Wall Street. The face of Romney is not the face of the electorate. The hedge-fund mentality of these elite creeps is not the mentality of the small investor that gets repeatedly hosed by their machinations.
NOTHING has changed with the fundamental outlook for this builder. In fact, it's improved dramatically. Credit Suisse's recent stats show 90th percentile readings on inventory and sales in several geographic areas that KBH serves. By Springtime they will be selling homes on all cylinders. This is a $20-25 stock; not a $13 stock.